Different sources of funding available to entrepreneurs in USA


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http://www.bizplancorner.com/ investment opportunities for entrepreneurs in USA

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Different sources of funding available to entrepreneurs in USA

  1. 1. DIFFERENT SOURCES OF FUNDING AVAILABLE TO ENTREPRENEURS IN USA<br />www.BizPlanCorner.com– Call +1-800-351-0557<br />info@bizplancorner.com<br />
  2. 2. Every entrepreneur needs money in order to get their business off the ground. <br />Entrepreneur can get funds from number of ways, in which the most popular are, personal saving, bank loan and the most important and difficult way to get funds is venture capital. <br />www.BizPlanCorner.com<br />
  3. 3. Venture capital firms and funds<br />VCs invest in high potential companies with fixed amount of money that has been raised by these firms for funds, e.g. $100 million. <br />They fix the amount of funds and invest all in some specific number of companies, for e.g., 10 to 20 companies. <br />The expectation of venture capitalist firms is that all investments they make will liquidate in 3 to 7 years. <br />www.BizPlanCorner.com<br />
  4. 4. WHAT VENTURE CAPITAL FIRMS TEND TO LOOK FOR IN THEIR INVESTMENTS?<br />It is not necessary that all the VC companies invest in every industry. <br />They seek to invest in industries where they see higher return. <br />They look for the companies who have strong management team and those who work for gaining higher return. <br />They invest in people rather than products. <br />www.BizPlanCorner.com<br />
  5. 5. TYPES OF INVESTMENT<br />Venture capital firms invest in businesses in the following stages :<br />Seed: Pre start-up companies.<br />Start-up: The companies who are under one year old.<br />Later stage: These are the companies who are usually more than one year old.<br />Mezzanine: These are the companies who are ready to go public and looking for short-term loan to sustain their operations.<br />www.BizPlanCorner.com<br />
  6. 6. INVESTMENT PROCESS<br />Venture capital firms, before investing in any company, see business plan that contains all the information of a company. <br />A sound business plan helps business professionals to convince venture capitalists firms that their idea is worth their investment. <br />Once entrepreneurs succeed in encouraging potential venture capital firms, entrepreneurs need to sign the documents they get from VC firms for confirming for the deal. <br />Their terms and conditions are normally negotiable. <br />www.BizPlanCorner.com<br />
  7. 7. APPROACHING VENTURE CAPITALISTS<br />Following are the ways that an entrepreneur can seek for venture capitalists:<br />Online networking websites.<br />Call CPAs, lawyers or other entrepreneurs who just apply for funds from venture capital firms.<br />Investors and gatekeepers clubs.<br />www.BizPlanCorner.com<br />
  8. 8. Entrepreneurs seeking to grow their business and make their dream come true of taking their business towards success must need funds and only a venture capital firm is one that will help them to convert their dream into applicable reality.<br />www.BizPlanCorner.com<br />
  9. 9. THANK YOU<br />www.BizPlanCorner.com– Call +1-800-351-0557<br />info@bizplancorner.com<br />